A study on a coding scheme which is appropriate for motion compensation prediction (MC) error signals is presented. MC error signals have very small correlation between adjacent pixels, especially in the vertical direction. Moreover, the correlation varies to a large extent depending on scene, local feature and type of movement. Therefore, with respect to coding gain and decoded picture quality, an adaptive coding scheme where orthogonal transform or subband partition is applied only for cases having high correlation is likely efficient for MC error signals.
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